CONDITIONS AND WARRANTIES.  A Stipulation which is essential to the main purpose of the contract. It goes to the root of the contract (sec.12(2)  The.

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Presentation transcript:

CONDITIONS AND WARRANTIES

 A Stipulation which is essential to the main purpose of the contract. It goes to the root of the contract (sec.12(2)  The breach of the condition gives right to the aggrieved party to repudiate the contract of sale  Breach of condition may be treated as a breach of warranty

 A Stipulation which is collateral to the main purpose of the contract. (sec.12(3)  Not that important for the performance of the contract  The breach of the condition gives right to the aggrieved party to claim damages  Breach of warranty cannot be treated as a breach of condition

 DIFFERENCES BETWEEN CONDITIONS AND WARRANTIES ◦ AS TO VALUE ◦ AS TO BREACH ◦ AS TO TREATMENT

 CONDITION AS TO TITLE  SALE BY DESCRIPTION – Goods to correspond with the description. “If you contract to sell peas, you cannot oblige a party to take beans”  SALE BY DESCRIPTION AS WELL AS SAMPLE  CONDITION AS TO QUALITY OR FITNESS  Condition as to Merchantability – Pen that does not write and a clock that does not keep time are not merchantable. ◦ Sale of radio set that does not work (R.S.Thakur vs. HGE Corpn) ◦ Sale of low quality Catapult and the boy was blinded in one eye. (Godley Vs Perry)  Condition implied by Custom – Sale of Hot water bottle – burst – injuring wife (Priest Vs. Last)  Sale by Sample -

 Sale by Sample – ◦ Bulk to correspond to sample ◦ Buyer given opportunity to compare the bulk with sample ◦ Goods shall be free from any defect rendering them unmerchantable  Condition as to wholesomeness- In case of eatables and provisions in addition to merchantable condition, the good shall be wholesome ◦ Milk containing germs of typhoid fever. F’s wife took milk and got infection and died. F could recover damages (Frost Vs. Aylesbury Dairy Co. ltd) ◦ C bought a bun and broke his tooth because of a stone in the bun. Held he could recover damages (Chaproniere Vs. Mason)

 Warranty of Quiet Possession  Warranty of freedom from encumbrances  Warranty as to quality or fitness by usage of trade  Warranty to disclose dangerous nature of goods

1. Express Agreement 2.. In the course of dealings between them 3. Customs and Usage of trade